India is poised for its next phase of industrial growth. An opportunity worth $45 billion of capex is seen across the new age segments: semiconductors, data centres, electronics, solar manufacturing, aerospace and space. According to Global Brokerage Jefferies, the newly arising sectors are likely to be important drivers of this second cycle and the brokerage has identified 16 stocks that are Buy-rated in this space. Amongst the stocks named, Keynes Technology and Bharat Forge can be termed as direct beneficiaries, along with stocks like Bharti Airtel and various others, scattered across the new age manufacturing chain.
India’s New Industrial Revolution
India’s new industrial cycle this time will be unlike the earlier infrastructure based capex driven one; according to report released by Jefferies in Sept 2026 on ‘India: Turning Policy into Projects, Investment Flows in New Growth Engine’. Jefferies sees Government initiatives, Private Sector initiatives, Technology uptake, Domestic demand, and Localisation of Supply chain as drivers to create opportunities within these emerging sectors. The six major themes Jefferies has mapped are: space, semiconductors, data centers, electronics manufacturing, solar manufacturing, aerospace. The sectors are poised to move from the “policy stage to investment stage, production and exports, leading to strong investment case in the long term”.
Kaynes Technology a Key Beneficiary
Kaynes technology is one the most important stocks named in Jefferies capex theme. Given its focus and positioning across electronics manufacturing and the semiconductor value chain, the company offers a unique opportunity to invest in India’s domestic value add, and potentially its future within electronics. This is because while electronics manufacturing itself is getting an increased impetus from government initiatives like the Electronics Components Manufacturing Scheme having raised the outlay from earlier policy, and mobile manufacturing to push exports and domestic production, even the component making aspect of electronics will see tremendous tailwinds from policy as India moves from merely assembling products to manufacturing components such as Printed Circuit Boards. In the past, we have already recommended Kaynes Tech, calling it our best EMS bet owing to early focus on components and we now believe strong sales growth through FY29.
Bharat Forge finds a push from Aerospace and Defense
Another name from the brokerage’s list which could potentially leverage this boom is Bharat Forge as India increases its manufacturing and defense capability. Apart from auto component traditional business, Bharat Forge has also expanded to defense sector, aerospace sector, and other high end engineering segment industries. We have maintained our constructive stance on Bharat Forge given its pipeline of orders in the defense space, coupled with export recoveries and diversification into high-value platforms.
The ospace opportunity is enormous, with India’s aerospace exports currently at about $7 billion a year expected to sky rocket.
With growing global aircraft demand and some global manufacturing capacity bottlenecks, there is considerable scope for Indian engineering firms to come in.
Data centers could pose opportunity worth $45 billion
Another high value opportunity could lie in Data Centers. India is expected to see a leap in its Data center capacities from 2 GW to 10 GW over the next 5 years according to Jefferies, thus presenting an opportunity of about $45 billion in this infra business. In this cycle, opportunities beyond the direct operators of data center could benefit Power Equipment makers, Cooling systems companies, Construction firms, network providers and even Renewable energy suppliers. Cloud computing, AI, Data Localization should be key demand drivers and leading technology as well as Indian Infra conglomerates have already pledged massive capital in building this vertical.
Semiconductors find new pace
In semiconductors too India is finding traction with investments crossing $20 billion mark. It includes investments from organizations likeTata Electronics(for fab) andMicron(for fab). These companies will provide impetus to a whole array of Indian manufacturing in electronics; be it equipment manufacturing, electronic assembly, components supply chain, material and even testing infrastructure.
Given its manufacturing capabilities.
Companies with similar scale could thus potentially reap benefits from this vertical.
New growth engines from Solar manufacturing and Space
Other sectors that are picking pace as new growth areas include Solar manufacturing. India is moving towards complete Localization with an aim of 90% localization of solar manufacturing by 2030 backed by policy and favorable costs of manufacturing. Jefferies picks Premier Energies and Emmvee as potential beneficiaries. Furthermore, Private Indian space sector is flourishing and includes over 400 startups and this will only see demand rise in the coming years till 2030.
What does it mean for Investors
The latest thinking from Jefferies shows that India’s next capex cycle can’t be a traditional road and infrastructure based boom; Instead it would be dominated by technology based manufacturing and digital infrastructure sectors. The 16 Buy rated stocks mentioned will provide exposure to diversified themes. However Investors need to consider valuations, execution risks, competition, and the inherent long gestations associated with new manufacturing projects. The Indian transformation into an Electronic manufacturingHub; could ultimately spell for new breed of Winners for Dalal Street; from Kaynes Technology and Bharat Forge included here, for the $45 Billion opportunity at stake.
